Commodities markets summary

Oil prices have pushed higher as investors shrugged off a surprise increase in US commercial crude-oil stockpiles.

US benchmark West Texas Intermediate (WTI) for September delivery rose 22 cents, finishing at $US97.59 a barrel on the New York Mercantile Exchange on Wednesday.

Advertisement

The main European futures contract, Brent North Sea crude oil for September, surged $US1.26 higher to close at $US104.28 a barrel in London trade, rebounding from a 13-month low the prior day.

Both WTI and Brent fell Tuesday after the International Energy Agency cut its demand outlook for 2014 and 2015, citing slower global economic growth.

PRECIOUS METALS

Gold futures have settled near a four-week high as investors sought the safety of the precious metal amid ongoing geopolitical tensions and signs of weakness in the US economy.

Gold for December delivery, the most active contract, on Wednesday rose $US3.90, or 0.3 per cent, to settle at $US1,314.50 a troy ounce on the Comex division of the New York Mercantile Exchange. This was the highest settlement since July 17, when prices closed at $US1,316.90 an ounce.

Gold prices have inched higher in recent days as some investors sought to protect their wealth against a simmering conflict in eastern Europe. Russia conducted military drills near Ukraine's border over the weekend, as some Western observers expressed concern about escalating tension between the two powers.

BASE METALS

Copper futures closed lower on the London Metal Exchange (LME), weighed down by some lukewarm economic data out of China.

After reaching a seven-week low, the LME's three-month copper contract on Wednesday was 1.1 per cent lower at $US6,885 a metric ton at the close of open-outcry trading.

Prices of the flagship three-month contract fell after disappointing Chinese data showed new loans dropped in July to the lowest level in nearly five years.

"A sharp retrenchment in real-estate borrowing explains the bulk of this retreat," said Edward Meir, a senior commodities strategist with INTL FCStone.

Value-added industrial output in China, the world's biggest consumer of copper, rose 9.0 per cent in July from a year earlier, edging down from a 9.2 per cent on-year increase in June, data from the National Bureau of Statistics showed.